Unions gain in court on pension battle

Judge orders temporary delay

Two court decisions have cleared the way for city labor unions to air their grievances over San Diego’s voter-approved pension overhaul in front of a state agency next week, a major first step in their push to invalidate Proposition B and keep guaranteed pensions in place.

Superior Court Judge Luis Vargas issued a “temporary delay” that prevents the city from implementing Proposition B — which replaces pensions with 401(k)-style plans for most new hires — until July 27. The California Supreme Court also declined a request by the city to consolidate several Proposition B lawsuits into a single case, skip potentially years of litigation and rule directly on its legality.

The result of those two actions is that the Public Employment Relations Board, a state agency charged with investigating labor disputes, will move forward with an administrative hearing next Tuesday on Proposition B in Glendale.

At issue is a union complaint accusing city leaders of illegally circumventing state labor law by crafting the measure as a citizens’ initiative and then using the power and influence of their offices to gather signatures on its behalf.

Unions have been battling in court for months to have PERB investigate the facts of the case while the city and Proposition B proponents have tried to block those proceedings.

“All we’ve ever asked for was to have our day at the PERB administrative hearing and that’s something the city has fought literally tooth and nail for months now,” said Michael Zucchet, head of the Municipal Employees Association, the city’s largest union representing white-collar workers. “What is clear is that the hearing is finally going to happen next week and it’s going to be meaningful as to what comes out of that.”

In February, PERB found there was “reasonable cause” that the city violated state law with the initiative but formal hearings on the issue were delayed until after the June 5 election at the city’s urging by Judge Vargas.

Any decision by PERB could then be challenged in appellate court and, if necessary, the state Supreme Court, a legal battle that could drag on for years. An initial decision by PERB could be months away.

The more immediate question is what happens on July 27 when the temporary restraining order against the city expires. Vargas scheduled a hearing for that day to determine whether to grant a longer injunction or lift the order and allow the city to implement Proposition B.

The reality is the current delay does little to halt Proposition B because the initiative doesn’t go into effect until the election results are accepted and filed by the Secretary of State’s Office, a procedural step expected to come in late July or early August.

Vargas issued the temporary restraining order late Tuesday and said it doesn’t prevent the city and its unions from continuing to negotiate over the implementation of Proposition B as required. He said he would assess the progress of those talks before deciding to extend or lift the order.

Proposition B proponents, including City Councilman Carl DeMaio, have said the initiative will withstand legal scrutiny and noted the latest ruling doesn’t really delay anything.